Looking at our trend timeframe we see BTC appears to have broken our descending channel, however, we have failed to close above our weekly resistance at $8,800. Stochastic RSI showing momentum remains in favor of bulls. Retracements are normal and healthy, just because we see a couple of candles switch does not necessarily mean we have switched trends. A bearish engulfing at this level indicates BTC will be forming a lower low, expect a drop below $6,000 or a double bottom at $6,700. A weekly close above $8,800 indicates our next leg towards the upside. A look at our smaller timeframe can give us a better idea.
Shifting to our pattern timeframe we see dynamic support at $7,900, stochastic rsi showing momentum is in favor of the bears. Expecting a bounce off $7,900 or a daily close above $8,700 to indicate our next direction.
Finally looking at our trigger timeframe we see BTC may have found short term support based off our Fibonacci retracement. A close below $8,025 indicates we are no longer in this short term bullish trend, however, if we hold at our current level expect a radical push towards the upside. Stochastic RSI showing momentum is in favor of the bears however it looks like we are slowing down. A 4hour close above $8,500 indicates we are heading towards the upside, a 4hour close below $8,300 indicates we will continue towards $8,000.
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